Advertisements
Advertisements
Question
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
Advertisements
Solution
When the percentage change in quantity supplied is greater than the percentage change in price, then supply for such a commodity is said to be highly elastic. In such a case, Es > 1, and the straight line supply curve originates from the Y-axis, as shown in the following diagram.
RELATED QUESTIONS
Identify the degree of elasticity of supply from the following graph:
Identify the elasticity of supply for the following with proper reasoning:
Short run and long run period.
If the price elsaticity of supply is 1 and the percentage change in price is 10, then the percentage change in quatity supplied should be ______.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I:
| Column I | Column II |
| A. Perfectly Inelastic | (i) Es > 1 |
| B. Perfectly Elastic | (ii) Es < 1 |
| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
Choose the correct alternative:
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
Draw and briefly explain a perfectly inelastic supply curve.
If the price of a commodity increases by 50% and its supply increases by 25% then calculate the price elasticity of supply following the percentage method. Identify the degree of price elasticity.
What is meant by elasticity of supply?
Why does the measure of price elasticity of supply of a good carry plus sign?
